Monday, April 24, 2006

Sirius Family Plan

April 24, 2006

The quick eyes over at Sirius Backstage noticed that Sirius is stepping up their Family Plan to a certain extent. You can look at the Sirius Backstage piece here.

Satellite Standard Group (SSG) had noted in an earlier article that the Family plan sector was an area that Sirius could well chase if they so desired. With Sirius' Family plan making up about 11% of the subscriber base, there is room for growth in this channel. By contrast, XM currently has about 20% of their subscriber base in the Family Plan.

While the family plan subscribers do pay a lower monthly fee ($6.99), they do tend to be less expensive to gather up, and less likely to churn out.

In the past, XM has indicated that the "sweetspot" for the Family plan is somewhere between 25% and 30% of the base. If this is true, then Sirius has plenty of room to grow this segment. This first push into this area will be short lived (it ends May1, 2006), and is likely a test run to see how well the promotion is accepted.

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The link to this write up is http://tinyurl.com/lx4be